"02 September 2012" Archive

Low Cost Days are over

The process of doing business has changed over the last 2 decades across the globe. With the opening up of the gates of free trade and Liberization in the emerging economies married with technological advances in Developed nations the business has become more competitive rather than a challenge. ...

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Posted Under: Finance |

PVAT – Change in Rate of Tax on Goods Which Are Subject To Vat W.E.F 03-09-2012

Punjab Govt. through Public Notice dated 02-09-2012 has increased the rate of tax w.e.f 03-09-2012. Effects of this Public Notice are as under: -1. Sugar: - The state Government is pleased to waive tax on Sugar w.e.f 03-09-2012.2. Increase in the rate of tax by 0.5% under the Punjab VAT Act 2005 w.e.f 03-09-2012. Which resulted in increa...

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Posted Under: Finance |

It is not necessary for assessee to establish that debt has become irrecoverable

A.C. I .T. Vs M/s Get it Informediary Ltd. (ITAT Delhi)

As is apparent from the aforesaid facts, the AO disallowed the claim of bad debts in the absence of any evidence as to when the amount was offered as income and there was nothing to show as to whether this amount had been actually written off in the books of account. On appeal, the ld. CIT(A) admitted the additional evidence in this regar...

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Rejection of Nil or lower tax deduction certificate for pendency of penalty proceedings is invalid

Serco BPO (P.) Ltd. Vs Assistant Commissioner of Income-tax, TDS Circle, (Punjab and Hariyana High Court)

The issue of certificate under Sub-section (1) of Section 197 of the Act is mandatory on fulfilment of conditions enumerated under the rules. For determining the existing and estimated liability of the assessee where tax deduction is from income other than dividends, the Assessing Officer is to be guided by Sub-rule (2) of Rule 28AA of th...

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Relief u/s. 10A has to be given before adjustment of current as well as past losses

Commissioner of Income-tax Vs TEI Technologies (P.) Ltd. (Delhi High Court)

ection 10A, as it presently stands, though worded as deduction provision, is essentially and in substance an exemption provision. We have also held that the implication of an exemption provision is that the particular income which is exempt from tax does not enter the field of taxation and is not subject to any computation. ...

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Non quote of PAN on TDS certificate issued may attract penalty u/s. 272B

General Manager, J&K Project Construction Corpn. Ltd. Vs Income-tax Officer (TDS), Jammu (ITAT Amritsar)

As per order passed by the ITO (TDS), he has issued show cause notice to know the reason why the assessee has not quoted the PAN of the deductee in Form No. 16 and 16A. But the assessee had not given any explanation before the ITO (TDS), even the assessee has also failed to appear before him on the date fixed. ...

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Procedure for Changes/ Amendments in Constitution of Registered Partnership Firm

Change in the constitution of the firm and its dissolution [Section 63(1)] - When change occurs in the constitution of the firm, any of the new, continuing or the outgoing partner, while when a registered firm is dissolved, any person who was a partner immediately before the dissolution or the agent of any such partner or person specially...

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Posted Under: Finance | ,

Demerger without transfer of liabilities is valid unless sole motive for the same is tax avoidance

Vodafone Essar Gujarat Ltd. Vs Department of Income-tax (Gujarat High Court)

The main contention of the Income Tax Department is that the Scheme is floated with the sole object to avoid tax liability. Except the Income Tax Department no objections were raised by anyone against sanctioning the Scheme. ...

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Service Tax – CAs having turnover exceeding Rs. 50 Lakh

Till 31.03.2011, point of taxation in case of eight specified services including Chartered Accountants (CAs) was determined on the basis of receipt of payment. However, w.e.f. 01.04.2011, this benefit has been extended to all services albeit, in a slightly modified form. Now all individuals, partnership firms (including limited liabilit...

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Posted Under: Finance | ,

S. 115JB – MAT- Assessee not eligible for credit of Surcharge & Cess paid

Richa Global Exports Pvt. Ltd. Vs Assistant Commissioner of Income-tax (ITAT Delhi)

Therefore, it emerges that MAT payable u/s 115JB is only income tax and does not include surcharge or education cess. Therefore, if only income tax is paid under the provisions of section 115JB it is natural that tax credit u/s 115JAA will only be of income tax and not of surcharge and education cess. ...

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